If you’re looking for online loans while on employment insurance, you have options. There are lenders in Canada that offer online payday loans for EI. These tend to have the quickest approval and funding, but since they also come with extremely high interest rates, they’re suitable only as a last resort. Alternatives to payday loans that can also accept EI are installment loans and early pay advances.
Keep reading to find out where you can apply and get approved for a loan fast as an EI recipient.
Can you get a loan while on EI?
You can take out a loan while you’re on employment insurance and it won’t impact your benefits. Your first step to getting financing is to find a lender that accepts EI as a valid source of income, because not all lenders do.
Your employment insurance can be especially helpful if you don’t have any other sources of income coming in. It can show a lender that you have the means to pay back a loan even though you’re between jobs.
Compare EI loans you can apply for
Installment loans are one option for EI recipients looking for a loan. Apply online and get pre-approved in minutes.
Online broker LoanConnect allows you to compare offers of EI installment loans from multiple lenders on one platform. Five-minute pre-approval is available, with the money you borrow available within 24 to 48 hours of applying.
Loans Canada is a broker with the largest lender network in Canada. If you're struggling to find installment loans on EI, you can apply to Loans Canada to get connected to lenders that match your profile.
MDG Financial provides cash installment loans of up to $1,600. You can pre-qualify online without impacting your credit score. Once you're approved for a loan, the money will be deposited into your bank account within three hours.
Easy application process
Payments reported to credit bureaus
No penalty for early repayment
Established provider
560 minimum credit score required
High interest rates
Some borrowers may need more than $1,600
Loan amount
Up to $1,600
APR
29.78% – 44.8%
Term
Up to 36 months
Min. credit score
560
Serviced provinces
all provinces
Compare cash advance EI loans
Another EI loan option if you only need a small amount is a cash advance. You pay no interest on these cash loans, but you may pay a monthly subscription fee.
Nyble is another option if you're searching for EI loans with no credit check. All types of valid recurring income are accepted, and it's quick and easy to apply online. Nyble also offers more flexibility with repayments than payday lenders.
No interest charges
No late fees
Avoid overdraft fees
Flexible repayments
Small loan amount
Monthly fee applies
Loan amount
$30 – $250
APR
Starting at 0%
Term
30 days, extendable
Fees
0% interest with optional fees
Turnaround time
1-30 minutes with a paid membership or 1-3 business days with a free membership.
Get overdraft protection of up to $20, which can increase to up to $250 as you continue to pay a subscription fee starting at $2/month. You'll need a KOHO savings account to access this service.
No late fees
no impact to credit score
Get free financial coaching services when you subscribe to Cover
There is a subscription fee starting at $2/month
KOHO savings account required
Loan amount
$20 – $250
APR
Starting at 0%
Term
Flexible
Fees
0% interest with a subscription fee starting at $2/month
Bree is a pay advance service that lets you access small loans with minimum fuss. It's open to all types of income, including EI, and doesn't do credit checks. There's no interest on what you borrow, and the loan repayment is automatically deducted from your bank account on your next payday.
No credit checks
Easy to apply
Interest-free loan
Pay a $2.99 monthly membership fee
Standard funding takes up to three business days (extra fee for faster transfers)
Small loan amounts
Loan amount
$20 – $350
APR
Starting at 0%
Term
Next pay cycle (65 days max)
Fees
0% interest with a $2.99 monthly membership fee
Turnaround time
Receive funds within 5 minutes with express delivery (the fee is based on the advance amount) and up to 3 business days for standard delivery.
Serviced provinces
All provinces and territories
⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.Maximum borrowing costs will vary by province. Review the maximum borrowing cost for your province before entering into a loan agreement.
Compare EI payday loans
Payday loans are another type of loan to explore if your main source of income is EI. Payday loans are easier to get than other loans, but they are also extremely expensive. Only consider them as a last resort.
iCash provides instant approval and 24/7 funding, making it one of the fastest and most convenient lenders of EI payday loans. Apply in less than 10 minutes using your employment insurance as income.
Easy online application process with instant approval
Flexible repayment options to pay back your loan in 1, 2 or 3 easy installments (certain restrictions apply)
Mobile app banking so you can make payments and track your repayment progress on the go
Available to consumers with bad credit or no credit
No fees for early repayments
Generous cashback program with 20% of the fees you pay returned back to you as soon as you pay off your loan
High interest rates that are common with payday loans
Speedy Cash is another lender that accepts employment insurance as valid income. Based in BC, it provides fast approval and funding with no credit check.
Accepts various types of income
No credit check
High rates
Customer support is not 24/7
Loan amount
$250 – $1,500
APR
Varies by province
Term
Up to 62 days
Turnaround Time
24-hour application process with funding on the spot for in-person payday loan approvals, and up to 1 business day to e-Transfer for online applications
My Canada Payday offers EI payday loans with no credit check. It also provides instant approval and funding 24/7.
Accepts many types of income
No credit check
High rates
No 24/7 customer support
Loan amount
$100 – $1,500
APR
Varies by province
Term
Up to 62 days
Turnaround Time
Funds will be sent in as little as 15 minutes via Interac e-Transfer
How much would a $500 or $1,500 EI payday loan cost?
Because payday loans are regulated at the provincial level, the cost of a $500 EI payday loan will fall between $570 – $585, while a $1,500 payday loan will cost between $1,710 and $1,755, depending on where you live.
$500 payday loan total cost
$1,500 payday loan total cost
AB, BC, NB, ON, PEI
$575
$1,725
MB, SK, NS
$585
$1,755
NL
$570
$1,710
Should you get a personal loan or payday loan while on EI?
It’s worth exploring your personal loan options first before payday loans. Payday loans are only suitable for those facing a financial emergency and have exhausted all their other options.
We go through the differences in the sections below.
Features of payday loans that accept EI
Borrow between $100 and $1,500. Some EI payday lenders limit first-time borrowers to $300 to $500. Also, some provinces limit the borrower to a percentage of their income (50% in Ontario, BC, Saskatchewan and Newfoundland and 30% in Manitoba and New Brunswick).
Loan term. You usually need to repay your EI payday loan by your next payday. Payday loans in Alberta, however, have a minimum loan term of 42 days, and repayments must be made in at least 2 installments.
Borrowing fee. Depending on your province, you’ll pay between $14 to $17 for every $100 borrowed.
Fast and convenient. Payday loans are easy to get because lenders automate the process as much as possible and have lenient requirements. You can get a payday loan in as little as 1 hour.
Funding options. If you apply online, you can get your money via Interac e-Transfer or direct deposit. If you visit a store, you can get your loan as cash or via e-Transfer.
How to qualify for EI payday loans
To get a payday loan while on employment insurance, you’ll need to meet the following basic criteria:
Be a Canadian citizen or resident.
Be at least 18 years old.
Have a recurring EI income.
Have a bank account.
Before you apply
EI payday loans come with significant drawbacks, so before you apply, consider taking the following steps:
Check your budget. Make sure you can repay your loan in time, because missing a payment could result in NSF and late fees. Also check that you’ll have enough income left to pay for other debts and expenses once you repay your loan. If you don’t have enough, you may find yourself needing another loan.
Know the cost of payday loans. They’re one of the most expensive ways to borrow money, with annual percentage rates (APRs) in the triple digits.
Look for a licence. Check that the payday lender is licensed and follows the payday loan regulations of your province.
Can you get EI payday loans with no credit check?
Yes, some lenders in Canada do offer EI payday loans with no credit check. Rather than checking your credit score, they’ll focus on your ability to repay the loan. You’ll need to show them your bank statements to get approved.
Borrow larger amounts than payday loans on EI. Installment loan amounts are typically between $$500 and $10,000. But if your only income is EI, you may be approved for smaller amounts.
Loan term. Loan terms are typically between 3 - 60 months, but for EI installment loans, your loan term may be on the shorter end.
APR. Rates for EI installment loans range between 18% and 47%.
Turnaround time. You can get an installment loan in one to two business days.
Funding options. You can get your installment loan via direct deposit or e-Transfer.
How to qualify for EI installment loans
To qualify for installment loans while on EI, you’ll need the following:
Be a Canadian citizen or resident
Be at least 18 or 19 years old.
Have a steady EI income.
Meet the credit score requirement.
Installment loan lenders have stricter requirements than payday lenders. You’ll need to have a certain credit score and income amount to get approved, and not many installment loan lenders accept EI as a valid source of income.
Before you apply
Installment loans also come with risks, so consider taking the following steps before you apply:
Check your budget. Make sure you can afford the monthly payments of your EI loan, and see whether your unemployment benefits will be enough to cover the loan term.
Know the cost. Know how much interest and fees you’ll pay overall. Watch out for any extra charges that could drive up the cost of your EI loan, such as NSF fees, broker fees and surety fees.
Check the lender’s reputation. Apply to legitimate lenders only, and avoid those who pressure or rush you into signing.
How to compare EI loans
While your options may be more limited, you do have options for EI loans. So how do you choose which one is the best fit for you? Consider the following features:
APR. Keep an eye on the APR. This shows you the annual cost of a loan and helps you compare different types of credit. Payday loans are much more expensive than installment loans, credit cards and credit card cash advances.
Loan terms. Payday loans have extremely short loan terms, while installment loans allow for longer loan terms.
Turnaround times. If you speed is important to you, payday loans are faster to get than installment loans.
Legitimate lender. Be careful when applying for EI loans online, since it’s easier to fall prey to a fraudulent lender when you’re not dealing with them face to face. Make sure the company you want to work with is legitimate and has a good working relationship with its customers. You can also check out common personal loan scams and payday loan scams to find out how to protect yourself when searching for loans.
Representative example: John, a resident of BC, needs $700 fast
John, a resident of BC, is looking to borrow $700 fast. His credit score is 556 due to missed bill payments. John has been on EI for the past three months, which he receives every two weeks. His next EI payment is in 11 days.
Based on these factors, he narrows down his choices to payday loans and installment loans. The fee for a payday loan in BC is $15 for every $100 borrowed. John must repay it by his next payday.
EI payday loan
EI installment loan
Loan amount
$700
$700
Cost of loan
$15 per $100 borrowed = $105 (497.73% APR)
46.93% APR
Loan term
11 days
6 months
Payment amount
One full payment of $805
$133.15 monthly for 6 months ($98.88 in total interest)
Total loan cost
$805
$798.88
The installment loan is nearly as expensive as the payday loan on EI when comparing the dollar amounts. But John doesn’t think he’ll have $805 available in 11 days to repay the payday loan, and if he doesn’t repay it, he’ll face more fees. Thinking that 6 monthly payments of $133.15 are more manageable, he chooses the installment loan.
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.
How to apply for EI loans online
Check your credit score. The first thing you could do is check your credit score. If your credit score is under 660, be prepared to encounter higher interest rates.
Compare lenders. Compare at least three to four lenders to find the most competitive rates and terms.
Find out if you’re eligible. Check the eligibility criteria before applying. Do you need to have a certain credit score? Are there any minimum income requirements? Is EI even an acceptable form of income? Only apply for loans you know you can qualify for – and if you’re not sure, contact a lender and ask.
Fill out your application. Once you find the right loan for you, fill in an application to get the ball rolling. You can also click the green “Go to site” button in the table above to be redirected to a lender’s application page.
Get a decision. Lenders that offer EI loans usually give an instant decision.
Get verified. If you wish to proceed, your lender may ask for documents to verify your income and identity, such as bank statements and government-issued ID.
Review and sign your contract. Become familiar with your repayment schedule, the total cost of your loan and any extra charges you may encounter.
Alternatives to online installment loans and payday loans for EI
Here are other options to consider:
Cash advance apps. These loans let you access a small portion of your unemployment benefits in advance. You won’t pay interest, but you may pay a subscription fee.
Car title loan. With a car title loan, you put up a car you own as collateral. You can continue to use your car in your daily life, but if you fail to make the loan repayments, the lender can repossess your car.
Personal line of credit. Some online lenders, such as Mogo and Cash Money, accept non-employment income to approve a line of credit. With a line of credit, you can pay off the loan anytime, but this perk comes with risks.
Debt relief services. If you’re facing legitimate financial hardship, debt relief services are an option. Debt relief companies like Debt.ca offer different types of services, such as debt management, debt settlement, debt consolidation and credit counselling.
Bottom line
If you’re looking for EI loans online, you can sign up for a payday loan, installment loan or early pay advance. Payday loans have the most options, and you can even get one without a credit check, but they’re also extremely expensive and have very short repayment terms.
Frequently asked questions about EI loans
Yes, you can get a loan on EI, and you are not limited to just payday loans. Other loans you can apply for as an EI recipient are installment loans and early pay advances.
Approval boils down to your personal circumstances, but generally, payday loans for EI are easier to get approved for than other types of loans. Borrowers with a poor credit score can get a payday loan. If you meet a lender's income requirements and have a decent credit history, then you have a higher chance of approval.
Not all lenders are willing to accept employment insurance, and instead prefer other more steady sources of income. Here is a list of some popular payday loan providers in Canada who do not accept EI:
There are several ways to judge the legitimacy of a payday lender. You can check for a business licence, see how transparent they are with fees, check third-party reviews, look for BBB accreditation and see if they abide by provincial regulations.
It'll be hard to get approved for a traditional line of credit while on EI, but it's possible to get approved for a small credit line like Nyble.
Leanne Escobal is a publisher for Finder. She has spent over 11 years working with financial products and services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio
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